Customer Service
How convenience retailers can use store data to support customer experiences
Jake Bolling, co-founder and CEO at Skupos, explains that consumers expect a certain amount of personalization today and for convenience store operators that means optimizing how the business uses data.
September 21, 2021 by Jake Bolling
Of all the modern tools convenience retailers have at their disposal, none may be more powerful or important than data. Good data and knowing what to do with it supports operations in practically every aspect, helping to improve a store's overall efficiency, productivity and profitability.
What sometimes gets overlooked is how store data can be used to elevate or enhance the customer experience. With access to useful data, retailers gain a new understanding of their business — one that empowers them to make decisions that better serve their customers, which in turn can grow revenue.
To build better customer experiences and foster brand loyalty, consider how data can optimize these C-store components:
● Price. The number one indicator of a positive customer shopping experience is cost of goods. By competing on price, a store can build customer loyalty and drive more foot traffic. Analyze store-level and competitive data to optimize prices and maximize revenue.
● Product mix. Insights into what is (and isn't) selling at your store and other local stores is crucial information for merchandising purposes. Consumers have grown to expect products where and when they want them, and retailers can use data to ensure they're answering the call. This also applies to popular new products: Is your store stocking hot new items that consumers are seeking out? Staying on top of trends will satisfy customers and keep them coming back.
● Promotions and loyalty programs. Data can help guide how and what retailers promote or include in their loyalty programs. Analysis of promotion performance helps determine whether customers found it compelling and if the offer drove revenue. Additionally, data can help retailers better personalize their loyalty programs based on historical shopping behavior.
Still, some retailers may not be taking full advantage of available technologies and data in their decision-making processes. Whether the reason is cost, resources or a lack of understanding how to leverage the data, some retailers are leaving a lot on the table. The return on investment in data is high, and you can start seeing significant results quickly by starting here:
● Check data often. Rather than reacting only when something seems amiss, build data analysis into your daily or weekly tasks. The more often you look over the data, the more you'll start spotting patterns and can turn insights into actions.
● Start small. Focus on a few key data points rather than huge data sets. Prioritize what metrics matter to you, and get your feet wet with top-level key performance indicators before plunging into deep analyses.
● Top-selling products. Consumers have already indicated their preferences. Lean into it and sell more. Top sales are a great metric to design promotions around, including pairing two popular products or incentivizing multi-purchases with discounts rules such as "Buy two, get $1 off."
● Measure promotional performance. Analyze incremental dollars and units sold for promoted products. Confirm whether the effort was worth it before running a similar promotion.
● Consider sales timing. Dig into time-of-day and day-of-week sales data. You may just spot an opportunity to maximize sales based on consumer shopping behavior. These trends can indicate merchandising opportunities (eg. bananas and protein bars near a coffee bar for the morning daypart), to maximize share of wallet.
In any case, be sure you're looking at enough data over the long term to make truly informed choices. At the same time, don't get bogged down in the minutiae of the data. You're busy! Early on, focus on key metrics that give you the most bang for your buck. Leaning on a vendor who can help translate or parse out the information for you can help kick-start your data-driven efforts.
In an increasingly digital world, consumers expect a certain amount of personalization and service technology. Optimizing how your business uses data not only helps you meet those demands, it also helps bridge the gap between larger chains, smaller chains and independent stores — and provides a competitive advantage against other C-stores.
Understanding your data isn't a cure all, but it gives you the best possible read on the health of your operations, and provides you with a baseline to improve operations. The more you know about your store and your customers, the better you'll be able to serve them.
Jake Bolling is the co-founder and CEO of Skupos Inc.
About Jake Bolling
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